The White House says the TikTok algorithm and U.S. user data will be controlled “by America” under a proposed deal, shifting governance and infrastructure decisively onto U.S. soil. [5] The structure would give Americans six of seven board seats and install Oracle to host and secure domestic data, according to officials. [1] President Trump is expected to approve the arrangement via executive order later this week, reducing ByteDance’s stake below 20% to avert a January ban. [2]

Key Takeaways

– shows the plan puts the TikTok algorithm and U.S. data under American control, with Oracle hosting and six of seven board seats U.S.-held. – reveals President Trump could approve the deal via executive order this week, reducing ByteDance’s stake below 20% to avoid a January ban. – demonstrates a seven-member board will oversee algorithmic decisions, with majority U.S. ownership and Oracle managing data security for domestic users. – indicates the structure grants Americans six of seven board seats while ByteDance supplies a duplicate algorithm leased to a U.S. joint venture. – suggests legal and congressional challenges persist under 2024 law restricting foreign cooperation on recommendation systems, despite White House and Treasury optimism.

What U.S. control of the TikTok algorithm would entail

At the core of the emerging agreement is a pledge that the TikTok algorithm—the recommendation engine that drives what users see—and U.S. user data will be controlled in the United States. [1] Press secretary Karoline Leavitt framed the policy in stark terms, saying “the algorithm will also be controlled by America,” in a bid to address longstanding national security concerns. [3]

Operationally, that means governance and technical stewardship migrate to American entities: a U.S.-led board would set policy and oversight for recommendations, while an American cloud provider would host and secure data for U.S. users. [2] The White House argues this places key levers—what the app recommends and where data lives—squarely under U.S. jurisdiction and management. [1]

The administration’s stated intent is to keep the platform available in the U.S. without interruption and to demonstrate measurable structural safeguards ahead of looming statutory deadlines. [2] The plan is framed as a compliance pathway that reassigns algorithmic control and data custody to American hands without shuttering the app for its U.S. audience. [5]

The board structure: six of seven seats for Americans

Officials say Americans will hold six of seven seats on a new TikTok governing board, creating a supermajority with direct responsibility for U.S. platform operations and oversight. [1] The same board is expected to oversee key algorithmic decisions affecting the U.S. feed, embedding governance of recommendations in an American-majority body. [2]

Names of the six American board members were not disclosed, and the company did not immediately comment, leaving open questions about the specific expertise and affiliations represented. [5] The American-heavy board construction is designed to ensure decisive votes on policy, moderation, and recommendation protocols can be made domestically. [1]

Oracle’s data role and the path to a January deadline

Under the draft arrangement, Oracle would host U.S. user data and manage security, continuing the “trusted technology partner” role long discussed in prior iterations of a TikTok restructuring. [2] Administration statements also describe Oracle as responsible for data protections, adding another layer of separation between U.S. users and any foreign access. [3]

Timing remains central: the White House strategy aims to avoid a ban slated for January by locking in ownership, governance, and hosting commitments before the deadline. [2] With a formal executive order anticipated later this week, the window for implementing technical and corporate transitions is narrow but explicitly planned. [2]

ByteDance stake, investor lineup, and ownership math

The proposed transaction would drop ByteDance’s stake in the restructured TikTok entity below 20%, pushing majority control to U.S. investors in both voting and economic terms. [2] White House messaging also emphasizes majority American ownership for U.S. operations, a standard lawmakers have pressed for since last year’s legislation passed. [5]

Potential backers continue to surface. The Associated Press reported that the Murdochs and Dell could participate, signaling a group of high-profile domestic investors with media and technology credentials. [3] Axios added that Andreessen Horowitz and Silver Lake are among investors expected in a U.S. joint venture that would lead the American side of the platform. [4]

Reducing ByteDance below the 20% threshold is intended to meet clear numerical tests of control that lawmakers and regulators can verify in public filings and compliance reviews. [2] The combination of a U.S.-majority board and a sub-20% foreign stake is designed to address both governance and ownership dimensions of control. [2]

How the TikTok algorithm oversight would work

To separate U.S. recommendations from foreign influence, ByteDance would create a duplicate algorithm and lease it to a U.S. joint venture led by American investors, according to Axios reporting. [4] That construct attempts to preserve product performance while relocating decision rights and operational stewardship to a U.S.-controlled entity. [4]

A newly formed board would review and guide algorithmic decision-making for the U.S. market, including policy changes, ranking adjustments, and safeguards tied to sensitive content. [2] This approach seeks to embed oversight “above the stack,” where governance and testing of the recommendation engine are directed by Americans with fiduciary duties to the U.S. entity. [2]

The White House position is that such measures place the recommendation system “under American control”—both in corporate governance and in practical deployment—alongside U.S.-based data hosting. [1] Together, those controls are meant to satisfy concerns that the content feed could be manipulated by foreign owners or governments. [1]

Legal risk: 2024 law and congressional scrutiny

A critical unresolved issue is whether leasing a duplicate algorithm from ByteDance complies with the 2024 law, which restricts foreign cooperation on recommendation systems for covered platforms. [4] Some insiders warn that even a lease could be interpreted as ongoing foreign involvement, potentially triggering legal or regulatory challenges in court or Congress. [4]

In parallel, the deal faces congressional scrutiny, with lawmakers already signaling they will test whether the structure meets the letter and spirit of the statute. [1] NBC reported that lawmakers continue debating whether a sale and new governance will satisfy the 2024 law’s requirements, underscoring the political and legal stakes. [5]

Despite these questions, Treasury and White House officials remain optimistic about finalizing terms, even as they acknowledge that court challenges or legislative pushback could follow. [4] The administration’s task is to produce a defensible line between U.S. control and any residual foreign cooperation on the recommendation engine. [4]

Timeline: from Sept. 20 announcement to an expected executive order

The current framework crystallized on Sept. 20, when the White House said a deal would put the recommendation algorithm and U.S. data under American control with six of seven board seats going to Americans. [1] That same day, officials reiterated on Fox News that “the algorithm will also be controlled by America,” while withholding board member names. [5]

By Sept. 22, Reuters reported that President Trump is expected to sign an executive order approving the deal this week, with ByteDance’s stake falling below 20% and a new board overseeing the algorithm. [2] Axios, also on Sept. 22, detailed the duplicate algorithm leasing plan and flagged possible conflicts with the 2024 restrictions on foreign recommendation system cooperation. [4]

What changes for U.S. users if the TikTok algorithm is localized

If approved, the deal would keep TikTok operational in the United States while shifting algorithmic oversight and data hosting to American entities overseen by a U.S.-majority board. [2] In practical terms, U.S.-based governance could impose new disclosure, auditing, and testing processes on recommendation changes before they affect American users’ feeds. [2]

However, several details remain unsettled, including the final board composition and how “duplicate” the leased algorithm must be to satisfy compliance without ongoing foreign collaboration. [5] Officials have acknowledged they are still negotiating technical and legal specifics with Chinese counterparts, leaving implementation details to be finalized in the coming days. [3]

Sources:

[1] The Washington Post – Emerging TikTok deal with China ensures US control of board and crucial algorithm, White House says: www.washingtonpost.com/business/2025/09/20/tiktok-china-trump-social-video-platform-oracle/64981fda-9649-11f0-8336-4757e168ec2a_story.html” target=”_blank” rel=”nofollow noopener noreferrer”>https://www.washingtonpost.com/business/2025/09/20/tiktok-china-trump-social-video-platform-oracle/64981fda-9649-11f0-8336-4757e168ec2a_story.html

[2] Reuters – Trump expected to approve TikTok deal via executive order later this week, WSJ reports: www.reuters.com/world/china/trump-expected-approve-tiktok-deal-via-executive-order-later-this-week-wsj-2025-09-22/” target=”_blank” rel=”nofollow noopener noreferrer”>https://www.reuters.com/world/china/trump-expected-approve-tiktok-deal-via-executive-order-later-this-week-wsj-2025-09-22/ [3] The Associated Press – Trump reveals Murdochs and Dell could potentially take part in TikTok deal: https://apnews.com/article/c175ddc4bdeaa269543870f1227cd0d9

[4] Axios – Inside Trump’s deal to save TikTok: www.axios.com/2025/09/22/tiktok-bytedance-trump-algorithm-lease” target=”_blank” rel=”nofollow noopener noreferrer”>https://www.axios.com/2025/09/22/tiktok-bytedance-trump-algorithm-lease [5] NBC News – TikTok’s algorithm and data will be controlled ‘by America,’ White House says: www.nbcdfw.com/news/national-international/white-house-tiktok-algorithm-data-controlled-by-america/3921376/” target=”_blank” rel=”nofollow noopener noreferrer”>https://www.nbcdfw.com/news/national-international/white-house-tiktok-algorithm-data-controlled-by-america/3921376/

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